New Build properties in the name of a Limited Company (December 2009)

Having completed a couple of new build houses, the developer decided to keep hold of the properties rather than sell them in a depressed market. The properties were held in the name of his Limited Company.

The problem here was that very few lenders are happy to lend on new build properties and none of the remaining Buy to Let lenders were willing to lend to Limited Companies. Both houses had a value of £250,000 and the company had development finance outstanding with a High Street Bank of £250,000.

We were able to refinance each property at 60% Loan to Value which enabled the company to repay the development finance and release a further £50,000 for fees and cashflow.

Terms Agreed:

Interest Rate 3.75% above Base Rate
Lender Fee 1.75%
20 yr repayment term with initial 2 years interest only